Universal Life – International Descriptions

  • 2 Universal life is a combination flexible premium, adjustable life insurance policy.
    • The policyholder may select the amount of premium he or she can pay and the policy benefits are those which the premium will purchase.
    • Or, the premium payer may change the amount of insurance and pay premium accordingly.
    • 26. Universal life policy: is a combination flexible premium, adjustable life insurance policy.

    • The policyholder may select the amount of premium to pay and the policy benefits are those which the premium will purchase.

    • If the policyholder may choose to pay a premium that is greater than that required to support the chosen benefit, the excess accumulates as an investment.

2006 10 – IAIS – ISSUES PAPER ON ASSET-LIABILITY MANAGEMENT – [PDF-20p]

  • Universal Life Insurance:
    • …a flexible premium life insurance policy under which the policyholder may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the premium payments.
    • Premiums (less expense charges) are credited to a policy account from which mortality charges are deducted and to which interest is credited at rates which may change from time to time. (p138/G30)
  • Adjustable Life Insurance: 
    • a type of insurance that allows the policyholder to change the plan of insurance, raise or lower the face amount of the policy, increase or decrease the premium, and lengthen or shorten the protection period. (p109/G1)

2002 – IAIS / United Nation – Supervision of Insurance Operations – 140p